CNBC’s Jim Cramer said Meta Platforms’ poor performance isn’t a reason to jump on the stock. Shares are heading for their worst session in six months after Facebook’s parent company fell more than 9% on Thursday after raising its spending outlook. Still, Kramer strongly believes in CEO Mark Zuckerberg’s vision for the company. “My charitable trust trusts him,” Kramer said on “Squawk on the Street.” “We believe in Zuckerberg.” After all, over the years, Wall Street has had several meta-bad moments, and yet stocks have managed to bounce back. Zuckerberg’s huge Metaverse expenses and company-wide rebranding in 2022? That was the worst year ever for the meta. However, after management changed its strategy to focus on a “year of efficiency,” the stock made a multi-year comeback starting in 2023. META YTD Mountain Meta Platform YTD Cramer understands why investors are concerned. Metas has significantly increased spending on generative artificial intelligence over the past year. Management reiterated Meta’s 2026 total expense outlook, but the tech giant raised capital spending by $10 billion at the midpoint. To make matters worse, Bloomberg News reported that Meta is seeking to raise up to $25 billion through a bond sale to further fund its AI expansion. “The meta has work to do,” Kramer said. “They’re like the Treasury Department. They have to fund it every quarter.” Unlike big tech companies, Meta doesn’t have a cloud. Amazon, Microsoft, and Alphabet — all of which reported earnings Wednesday night — are the three largest clouds, in that order. As evidenced by Alphabet’s stock soaring nearly 7% on Thursday, the outlook for spending increases doesn’t seem to be on the horizon. Still, Meta’s sales and bottom line deserve some recognition due to strong numbers from its advertising business. “Let’s give the metas their due,” he added. “Advertising has accelerated significantly.” That’s another reason why his charitable trust (a portfolio managed by CNBC Investing Club) continues to hold stocks for the long term, and why Cramer recommends investors do the same. Jim Cramer ranks hyperscalers’ earnings Alphabet is the winner, with more upside expected Amazon rises another 15% and won’t stop there Microsoft’s earnings are far from impressive. Here’s why I’m afraid of Meta’s plummeting business results and won’t let go of my shares.
